If you claim exemption from withholding, your employer will not withhold federal income tax from your wages. The exemption applies only to income tax, not to social security or Medicare tax.
An exemption is good for only 1 year. You must give your employer a new Form W-4 by February 15 each year to continue your exemption.
To claim exemption, you must give your employer a Form W-4. Do not complete lines 5 and 6. Enter “Exempt” on line 7.
If you claim exemption, but later your situation changes so that you will have to pay income tax after all, you must file a new Form W-4 within 10 days after the change. If you claim exemption in 2012, but you expect to owe income tax for 2013, you must file a new Form W-4 by December 1, 2012.
You can claim exemption from withholding for 2012 only if both of the following situations apply.
- For 2011 you had a right to a refund of all federal income tax withheld because you had no tax liability.
- For 2012 you expect a refund of all federal income tax withheld because you expect to have no tax liability.
If you are a student, you are not automatically exempt. See chapter 1 to find out if you must file a return. If you work only part time or only during the summer, you may qualify for exemption from withholding.
Age 65 or older or blind.
If you are 65 or older or blind, use Worksheet 1-3 or 1-4 in chapter 1 of Publication 505, to help you decide if you qualify for exemption from withholding. Do not use either worksheet if you will itemize deductions, claim exemptions for dependents, or claim tax credits on your 2012 return. Instead, see Itemizing deductions or claiming exemptions or credits in chapter 1 of Publication 505.